NEM Foundations Stops Tracking XEM Stolen from Coincheck

The NEM Foundation will stop tracking the digital coins stolen from Coincheck, the organization has announced. The Singapore-based crypto organization says it has provided law enforcement authorities with the information it got from its investigations. It, however, did not explain why it decided to stop the tracking efforts.

Tracking efforts provided “actionable information”

In January, hackers attacked Coincheck and stole NEM worth some ¥58 billion, an equivalent of $550 million. Following the hack, the NEM Foundation, which was primarily created market NEM (XEM), developed a unique technology with which it used to identify the various accounts the stolen crypto was sent to.

The Singapore-based organization told reporters, on Tuesday, that its tracking efforts had provided some “actionable data” to law enforcement agencies. The Japanese times reports that the organization is, however, yet to give its reasons for stopping further digging into the hack.

Recently, a cyber-security expert told a Japanese media outlet that at least half of the NEM coins snatched from the Japanese crypto exchange may already have been converted into other digital coins or fiat money. The expert, Mr, Masanori Kusunoki, CEO at Japan Digital Design claims that the laundering has been done through a darknet website. So apparently, much of the missing NEM coins are possibly lost forever.

Mr. Kusunoki also says that the hackers are still using the darknet website in processing transactions. The cybersecurity expert also believes that it is getting more difficult to trace the transactions and track the snatched coins. Just a week after the hacking took place, the NEM Foundation released a statement saying no attempts to trade the cryptocurrency on other exchanges had been made.

In Recovery Mode

Coincheck has, for weeks now, tried to recover from the January hack, which is among the biggest hacks in crypto history. The Japanese crypto trading firm has already compensated an estimated 260,000 victims of the hack using ¥46.6 billion (about $440 million). The company has also come up with various measures set to improve security. It has informed relevant authorities about these measures.

In September, the crypto trading platform sought to be registered by the Japanese Financial Services Agency, FSA, under the newly revised laws that regulate payment services in Japan. However, its application is still pending following the January hacker attack. Sources suggest that the postponement of its registration is also partly due to the exchange’s policies that allow clients to remain anonymous.

Earlier this week, Japanese media reported that Coincheck was planning to stop trading three cryptocurrencies that provide a high level of anonymity-Dash, Zcash, and Monero. The Japanese Times published a piece saying that the crypto exchange had recognized the risk the three digital coins present, which can possibly facilitate money laundering activities. The three coins present very high anonymity levels such that identifying recipients of monies transacted on their blockchains becomes practically impossible.

Coincheck resumed trading operations on Monday. However, clients cannot trade ZEC, DASH, and XMR, but the company may provide them so they can sell their digital coins at some fixed rate.

About The Author

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche.